Richter Group...pharmaceutical market 25 0 10 20 30 40 50. EU –composition of sales •EU15...
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Richter Group Report, Q1 2019 Budapest, 10 May 2019
Transcript of Richter Group...pharmaceutical market 25 0 10 20 30 40 50. EU –composition of sales •EU15...
Richter GroupReport, Q1 2019
Budapest, 10 May 2019
Total sales
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Reported Base Change
Consolidated 383.0 EURm 366.3 EURm +16.7 EURm
121,612 HUFm 113,945 HUFm +7,667 HUFm
Változás
Vraylar® royalty increase +11.9 EURm
Vraylar® milestone income +22.5 EURm
Esmya® decline -10.2 EURm
Russia (generics) -12.2 EURm
China -9.1 EURm
W&R +7.0 EURm
FX impact ~9.4 EURm
* Profit attributable to owners of the parent
Financial results – highlights
Reported Base Change
EURm EURm EURm %
Gross profit 220.3 210.8 9.5 4.5
Profit from
operations
54.2 56.8 -2.6 -4.6
Net financial
(loss) / income
16.5 -7.7 24.2 n.a.
Profit for the
period*
69.3 46.6 22.7 48.7
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Key events
• February 2019 – Richter entered into a distribution and
supply agreement with a wholly owned subsidiary of
Allergan to commercialize its levonorgestrel releasing
Intrauterine System (IUS) in Latin American countries.
• March 2019 – Richter underwrote convertible notes issued
by Prima-Temp for a consideration of USD 5 million.
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Sales of key specialty portfolio
• Vraylar® royalty: USD 27.3m (EUR 24.0m)
one-off milestone income: USD 25.6m (EUR 22.5m)
• Reagila ®: EUR 2.1m
• CNS: EUR 77.5m (25%)
• Esmya®: EUR 5.9m
• Bemfola®: EUR 13.0m
• WHC: EUR 110.9m (36%)
Esmya®
Bemfola®
cariprazine
CNS – other
WHC – other
Other
Turnover of pharmaceutical segment.
5
16%
9%
2%4%30%
39%
11%
16%
15%
5%19%
3%2%
6%
2%
21%11%
18%
18%
5%7%
7%
1%
5%
2%
26%
Pharmaceutical sales by
geographies
HungaryRussia
EU12
EU15
USA
Other CIS
Ukraine
RoW
LatAm
China
Q1 2018 Q1 2019
Hungary
Russia
EU15
USA
Other CIS
Ukraine
RoW
LatAm
China
Total:
HUF 93.0bn
EUR 299.0m
Total:
HUF 97.6bn
EUR 307.2m
+4.9% (HUF)
+2.7% (EUR)
EU12
6
0
50
100
150
200
250
300
350
0
5 000
10 000
15 000
20 000
25 000
Russia
• Sales
RUB 4,846.6m (-10.2%)
EUR 65.0m (-15.8%)
• Increasing stock levels at
wholesalers – during the last
quarter of 2018
• Preshipments in Q4 2018
• Cautious credit policy
EURm
RUBm
Turnover of pharmaceutical segment.
+11.7%
7
0
50
100
150
200
250
EU15
Turnover of pharmaceutical segment.
EURm
• Sales
EUR 45.8m (-13.1%)
• Decreasing Esmya® sales
+5.2%
8
0
20
40
60
80
100
120
140
USA
USDm
Turnover of pharmaceutical segment.
• Sales
USD 65.3m (+148.3%)
• Proceeds resulting from sales of
Vraylar® :
- USD 27.3m royalty
- USD 25.6m one-off sales related
milestone income
• Increasing level of Plan B / Plan B
One-Step sales
• Decreasing sales of steroid APIs
+17.8%
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Total: EUR 307.2m
Pharmaceutical sales by
therapeutic areas
Muscle relaxants
Gastrointestinal
Other
Women’s Healthcare
Central Nervous System
Cardiovascular
10
25%
16%
36%
3%
5%
15%
Wholesale and retail
• W&R contributes 21% to
total consolidated sales
• 81% of the W&R turnover
originates in Romania
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
W&R Overall pharma sales
REPORTING PERIODConsolidated Financials
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Consolidated Financials –
Highlights
*Net income attributable to owners of the parent.
HUF Change % EUR Change %
Total revenue 121.6bn +6.7 383.0m +4.6
Gross profit 69.9bn +6.7 220.3m +4.5
Profit from
operations17.2bn -2.7 54.2m -4.6
Profit for the
period*22.0bn +51.8 69.3m +48.7
EPS (diluted) 118 +51.3 0.37 +48.0
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Consolidated Financials –
Flat gross margin+ Significant increase of
Vraylar® royalty
+ One-off milestone income in
respect of Vraylar® sales
+ Exchange rate movements
– Decreasing sales of Esmya®
– Serialization
– Price erosion on the
traditional markets
– Increasing wage pressure
– Higher turnover of W&R
segment
HUFm57.5% 57.5%
14
55%
56%
57%
58%
59%
60%
61%
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
450 000
COGS Gross profit Gross margin
S&M costsHUFm
15
0%
10%
20%
30%
40%
50%
60%
0
20 000
40 000
60 000
80 000
100 000
120 000
S&M costs S&M percentage of sales
R&D costsHUFm
16
0%
5%
10%
15%
0
10 000
20 000
30 000
40 000
50 000
R&D costs R&D percentage of sales
0%
5%
10%
15%
20%
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
Profit from operation Operating margin
Consolidated Financials –
decreasing operating margin
+ Lower levels of claw-back relatedexpenses
- Base effect – Q1 2018: one-offmilestone income
- Increase of operational expenses
HUFm
15.5%14.1%
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Q1 2019 M12 2018 M9 2018 H1 2018 Q1 2018
EURHUF 317.55 318.61 317.25 314.36 311.08
USDHUF 279.85 269.46 265.37 259.89 253.01
RUBHUF 4.26 4.32 4.34 4.38 4.45
EURRUB 74.54 73.75 73.10 71.77 69.91
EURUSD 1.13 1.18 1.20 1.21 1.23
KZTHUF 0.74 0.79 0.79 0.80 0.78
CNYHUF 41.60 40.80 40.76 40.74 39.78
Exchange rates
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At period end
Average
31.03.2019 31.12.2018 30.09.2018 30.06.2018 31.03.2018
EURHUF 320.79 321.51 323.78 328.60 312.55
USDHUF 286.14 280.94 278.76 282.06 253.94
RUBHUF 4.42 4.05 4.25 4.50 4.40
EURRUB 72.58 79.39 76.18 73.02 71.03
EURUSD 1.12 1.14 1.16 1.17 1.23
KZTHUF 0.75 0.75 0.77 0.83 0.80
CNYHUF 42.60 40.90 40.49 42.62 40.38
REPORTING PERIODCorporate Matters
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Ownership structure
31 March 2019
Hungarian State Holding
Company
Domestic investors
International
investors
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64,10%
25,25%
10,65%
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Appendix I.
Individual Market Performances
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CIS – sales performance
and composition
EURm
Turnover of pharmaceutical segment.
23
0
100
200
300
400
500
Russia Ukraine Other CIS
• Ukraine
– increasing sales levels
(by USD +1.0m)
• Other republics
– sales increase
(by EUR +3.9m)
Ukraine,
Other republics
USDm
Turnover of pharmaceutical segment.
24
0
50
100
150
200
Ukraine Other CIS
Hungary
Turnover of pharmaceutical segment.
HUFbn
• Sales
HUF 10,680m (+0.5%)
• Dynamic growth of
pharmaceutical market
25
0
10
20
30
40
50
EU – composition of sales
• EU15– strengthening our position in
key Western-European
markets
– own Women’s Healthcare
sales and marketing network
• EU12– well established in the region
for decades
– own specialised sales network
Turnover of pharmaceutical segment.
EU15
EU12
26
49%
51%
EU12
EURm
Turnover of pharmaceutical segment.
• Sales:
EUR 48.6m (-11.3%)
• Poland:
– 15.6% sales decrease (PLN)
– Declining sales levels of
Groprinosin due to increasing
market competition
• Romania:
– 5.8% sales decrease (RON)
– New price list came into force
with effect from 1 January 2019
– Authority implemented a price
decrease for original products,
which have generic alternatives
on the market27
0
40
80
120
160
200
China
• Sales:
CNY 82.1m (-47.4%)
EUR 10.8m (-45.7%)
• Preshipments of Cavinton
during the base period
EURm
Turnover of pharmaceutical segment.
28
0
10
20
30
40
50
60
70
80
90
Latin America
• Sales:
USD 6.3m (+26.0%)
• Regional presence:
– Mexico, Colombia, Brazil
– Mediplus N.V. → Ecuador,
Bolivia, Peru, Chile
• Increasing sales of a range
of contraceptives
Turnover of pharmaceutical segment.
USDm
29
0
5
10
15
20
25
Appendix II.
Exchange Rate Movements
30
Evolution of currency
exchange rates I.HUF
31
240
260
280
300
320
340
EURHUF
USDHUF
Evolution of currency
exchange rates II.EUR
32
60,00
65,00
70,00
75,00
80,00
85,00
EURRUB
Evolution of currency
exchange rates III.HUF
33
3,75
4,00
4,25
4,50
4,75
5,00
RUBHUF
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